BEI CEO Iman Rachman Resigns Following IHSG's Decline, Economists: The Right Step in the Middle of the Transparency Issue

Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira Adhinegara. (Photo: VOI Doc)

JAKARTA - The Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira welcomed the news of Iman Rachman's resignation from his position as President Director of PT Bursa Efek Indonesia (BEI).

According to Bhima, the resignation is the right step considering the large losses arising from the non-compliance of the MSCI recommendations regarding the management of transparency of the Indonesian Stock Exchange.

"The resignation of the President Director of the Indonesia Stock Exchange was right because the losses were very large from the non-compliance of the MSCI recommendation in the management of the transparency of the Indonesian stock exchange," he told VOI, Friday, January 30.

He assessed that the Composite Stock Price Index (JCI) is a reflection of the national investment climate.

In fact, continued Bhima, new potential investors could potentially abandon their intentions if the exchange is managed improperly.

"JCI is like an investment portrait, even investors who just want to enter will back out if the exchange is mismanaged," he said.

Bhima also added that the market is beginning to show signs of rebound as the Financial Services Authority (OJK) is committed to improving the ownership structure of shares.

"The market is starting to rebound because the commitment of the OJK to improve share ownership," he said.

Bhima assessed that if the MSCI recommendation could be overcome well, there was an opportunity for a rebound in the stock market, but the strengthening tended to be limited.

In addition, he also highlighted the increasing domestic ownership, including the role of Danantara, in the Indonesian stock market.

According to him, this condition needs to be observed because too much ownership dominance can reflect an unhealthy market structure.

Bhima emphasized that the replacement for the President Director of the IDX must have high competence and dedication to improve the governance of the exchange, as well as be free from conflicts of interest.